(i) Broad-based and sustainable economicgrowth,(ii) Improving the quality and availability ofsocial and economic services,(iii) Ensuring social and economic inclusion ofpoor and marginalized groups, and(iv) Vigorously pursuing good governance.Nepal has been moving strongly towards aliberalized economy. It has drastically reduced tariffsand removed licensing requirements for manyimports. It has divested many public enterprises,relinquished its public-sector monopoly on importsof fertilizer, and removed the subsidy on someagricultural inputs. The economy was showing manyhealthy signs regarding growth, trade, and evengovernment revenue until very recently. However,the country’s widening conflict has slowed theeconomy and many critical indicators have showndiscouraging signs during fiscal year (FY) 2004 (MOF2004).Although the environment has not figuredamong the high-priority overall policies, it getsmentioned in sectoral policies such as forestry,infrastructure, urban development, and a few others.However, even under the Poverty Reduction StrategyProgramme, it is inconceivable that rural poverty canbe addressed without considering the available localnatural resources and their sustainablemanagement. Improved management of land, water,and forest resources and their better distribution arefundamental for reducing poverty in rural areas, inaddition to developing rural non-farm sectors.Important issues regarding governance of naturalresources need to be urgently addressed in thecontext of poverty reduction.In addition to these measures, different actionplans like the National Biodiversity Strategy 2004, theClean Production Measures Programme, and theEnvironment Sector Support Programme are trying toaddress the country’s environmental issues.Nepal and MultilateralEnvironmental AgreementsNepal has ratified the following conventions relevantto trade:(i) Plant Protection Agreement for the South-East Asia and Pacific Region 1956.(ii) Convention on the International Trade inEndangered Species of Wild Fauna and Flora(CITES) 1973.(iii) Montreal Protocol on Substances thatDeplete the Ozone Layer 1987 and itsamendments.(iv) Basel Convention on the Control ofTransboundary Movement of HazardousWastes and Disposal.(v) Convention on Biological Diversity (CBD)1992, and the Cartagena Protocol on(vi)Biosafety 2000.United Nations Framework Convention onClimate Change 1992, and the Kyoto Protocol1997 (accession).(vii) International Tropical Timber Agreement1994.There are a few other agreements that Nepalhas not signed at present, but may eventuallybecause of the issues they address.Each of the agreements is reviewed brieflybelow regarding trade implications.The Plant Protection Agreement for the South EastAsia and Pacific Region, 1956 or Asia Pacific PlantProtection Convention. The main objective of thisagreement is to prevent the introduction into andspread of destructive plant diseases and pests withinthe South East Asia and Pacific Region. In Nepalvarious measures have been implemented such asthe Plant Protection Act 1972 (2029 BS), PlantProtection Regulations 1975 (2031 BS), Forest ActAmendment 1993, and National Parks and WildlifeConservation Act 1973. However, implementationhas been very weak due to an open border, insufficientcheckpoints, and inadequate laboratories andquarantine stations (Sapkota undated).Convention on the International Trade inEndangered Species of Wild Fauna and Flora(CITES) 1973. CITES has a number of articlesrelevant to trade. Article II deals with trade inendangered species and defines conditions underwhich trade may take place. Protected species areclassified and listed in three appendices. Article IIIrefers to species threatened with extinction. Trade inthese species is subject to strict regulation andpermitted only under exceptional circumstances.The general thrust is that trade should not be forcommercial purposes and should not be harmful tothe species. The Convention of Parties under CITESregularly reviews illicit trade problems andrecommends suspension of trade with countries thatfail to comply with CITES provisions. Tradesuspension is recommended when there is (i)significant trade, and (ii) absence of domesticmeasures to enforce the provisions of conventions.More recently in the Convention of Parties 11 it wasagreed that trade suspension recommendationswould apply to countries that did not submit annualnational reports as required by Article VIII (7) (a) forthree consecutive years.178 Environment Assessment of Nepal : Emerging Issues and Challenges
Nepal has implemented various acts, rules, andregulations including a ban on collection, use, sale,distribution, transportation, and export of two plants—Cordyceps misirensis (yarcha gumba) and Orchislatefolia (paunch ounle). Similarly, the Governmenthas banned transportation, exports, and sale ofkhayar (Acacia catechu), chanp (Micheliaehampaca), and sal (Shorea robusta). However,experts consider the existing provisions andmeasures taken insufficient to fulfill the obligationsunder CITES (Sapkota undated).Montreal Protocol on Substances that Deplete theOzone Layer 1987 and its amendments. The mainfocus is on controlling the production and use ofozone-depleting substances (ODS). Articles focus oncontrolling imports and exports of all types of ODSand changing chlorofluorocarbon technologies tomore ozone-friendly options. Support has beenreceived for institutional strengthening and technicaladvice for reducing the use of ODS. Parties havingdifficulties meeting their obligations under theprotocol have to notify the Member of Parties. Nearly2,500 projects are being implemented in developingcountries to shift to non-ODS substances. Nepal hasagreed to reduce chlorofluorocarbon use at the rateof 3 tons per annum, phasing it out entirely by 2010.For halons being used by agriculture, hospitals, andfire brigades, it was agreed to reduce the amountannually and phase it out by 2040 (Mainali undated).Basel Convention on the Control ofTransboundary Movement of Hazardous Wastesand Disposal. This convention is directed towardsenvironmentally sound management of hazardouswaste as it is moved from one country to another.Countries can ban the imports of such hazardouswaste. Exports must have written consent of theimporters. If an importing country lacks the capacityto manage hazardous substances, parties can stoptheir exports. No hazardous waste can be exported toAntarctica, and there are packaging, labeling, andtransport requirements for hazardous waste. Limitedsupport is provided for capacity building.Convention on Biological Diversity 1992. Thepurpose of this convention is the conservation ofbiological diversity, promotion of sustainable use,and fair and equitable sharing of benefits arising fromthe use of genetic resources. Although it does notdirectly refer to trade measures, there are activitieswith trade implications. Those relate to preservingand maintaining knowledge, innovation, andpractices of indigenous and local communities, useof biological diversity, and fair and equitabledistribution of the use of genetic resources.Translating these into actual legislation and otherprocedures will need to clarify conditions of access,sustainable use, and benefit sharing of a country’sbiological resources.Nepal has instituted various policies, legislation,and institutional measures to implement theprovisions of the convention, and completed aNational Biodiversity Strategy in 2002. However, thereis an urgent need for updating the biodiversitydatabase so that the changes can be betterunderstood over time and endangered flora andfauna better monitored and protected. At present,little is known of the extent of trade in endangeredflora.Cartagena Protocol on Biosafety, 2000. Thisprotocol seeks to ensure safe transfer, handling, anduse of living modified organisms that may haveadverse impacts on biological diversity and humanhealth. It maintains that trade and environmentshould be mutually supportive, withoutcompromising biosafety for humans andenvironment. This protocol does not seek to changethe rights and obligations of a party under existinginternational agreements like the WTO. However,parties can take more protective actions than calledfor in the protocol. It specifies an Advanced InformedAgreement procedure that will hold in theinternational transboundary movement of livingmodified organisms. There are provisions for abiosafety clearinghouse that will focus on riskassessment in accordance with specified proceduresand time periods. There are specific handling andtransport requirements for living modifiedorganisms.United Nations Framework Convention on ClimateChange 1992. The objective here is the stabilizationof greenhouse gas concentrations in the atmosphere.It does not directly restrict trade, but actions relatedto reducing greenhouse gases could impact trade. Itpoints out that actions taken to combat climatechange should not be discriminatory to internationaltrade. A Global Environment Facility (GEF) providesfinancial resources to help countries reducegreenhouse gases by adopting appropriatetechnologies.Kyoto Protocol, 1997. This protocol to the UnitedNations Framework Convention on Climate Changeseeks to reduce emission of carbon dioxide throughenhancement of energy efficiency in all greenhouseemittingsectors. It supports the use of economic andfinancial incentives for adopting energy efficienttechnologies. It introduces the concepts of cleandevelopment mechanisms and emissions trading.Chapter 12: Environment and Trade179
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About the OrganisationsAsian Develo
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© 2006 International Centre for In
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AcknowledgementsWe would like to ex
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PM2.5PAHRSSAARCSACEPSEASO 2TSPUKUND
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Chapter 6: Energy Resources 65Intro
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List of FiguresFigure 2.1: People a
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Table 6.1: Energy Consumption and P
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forests are also used for infrastru
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as data gathered by different agenc
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Table 2.1: Population Growth Rates
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mortality rates for rural and urban
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Agglomeration village in the centra
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soil erosion, and depletion of wate
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provision remains inadequate becaus
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Malnutrition remains a serious obst
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Table 2.24: Existing and Projected
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Table 2.28: Income Poverty Indicato
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Table 2.31: Change in Employment St
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In 2004, the average annual househo
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Mountain areas have the most food i
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Schaffner, U. 1987. “Road Constru
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Table 3.1: Agricultural Economic De
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Table 3.4: Estimated Soil Erosion R
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B. PradhanImpacts of land degradati
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Carson, B. 1985. “Erosion and Sed
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The trend of forest coverage in the
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BiodiversityState of BiodiversityNe
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The Government has given legal prot
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Different ways of maintaining biodi
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Appendix 4.1: Table continuedMajor
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Appendix 4.2: Protected Plant and W
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Table A4.2.3: Nepal's Share in Plan
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to intense weathering, and percolat
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Table 5.5: Water Supply and Water T
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Table 5.9: Water Quality of Shallow
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species are reported to be endanger
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Ministry of Water Resources (MOWR).
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Definition, Forms, and UnitsEnergy
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Table 6.5: Hydropower PotentialRive
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Chilime Hydroelectric Project: An E
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load occurs from 6 pm to 9 pm with
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assessment of wind energy and lack
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Review of Dams and Development by t
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IUCNElizabeth Khaka, UNEP-NairobiRu
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therefore reflect the three guiding
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is a seasonal dust storm. Anthropog
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Figure 7.3: Average Air Quality, Ja
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matter, hydrocarbons, and NO x (Nae
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Figure: 7.9: Vehicle Registered in
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Brick Kilnchlorofluorocarbons (HCFC
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Climate ChangeA region’s climate
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Figure 7.14: Mean Annual Precipitat
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Table 7.3: National Ambient Air Qua
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India. Available: http://www.cleana
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———.1999. “Ambient Air Qual
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Appendix 7.1: World Health Organiza
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Table 8.1: Criteria for Urban Statu
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accommodate the rapidly increasing
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managing solid waste. They are part
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In most municipalities, hazardous w
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in worsening public health conditio
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objects of archaeological, historic
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Min BajracharyaB. PradhanVehicles a
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Department of Health Services (DOHS
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Table 9.1 describes the major highl
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the period to up 2017. The document
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earthquakes; and awareness raising
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Sub-regional LinkagesOther developi
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